ASST CIT CC 43, MUMBAI V. KHIRAD ZAIDI, MUMBAI

ITA 1338/MUM/2014

• Counselvise Citation: 133819914 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 27-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K DHONDIAL
• Assessee Lawyers: SHABNUM KEDIA
• Keywords: Unexplained cash credit; Unexplained investment; Gift; Search and seizure
• Section: 132

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI ,!' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NOS.1338 & 1339/MUM/2014 ASSESSMENT YEARS: 2006-07 & 2007-08 ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-43, R. NO.659, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD MUMBAI-400020 / VS. KHIRAD ZAIDI, KENNEDY HOUSE, 2 ND FLOOR, GOREGAONKAR ROAD, NANA CHOWK, MUMBAI / REVENUE / ASSESSEE P.A. NO. AASPZ4760G $%& / REVENUE BY SHRI A.K.DHONDIAL-CIT-DR $%& / ASSESSEE BY MS. SHABNUM KEDIA / DATE OF HEARING 10/06/2015 & / DATE OF ORDER: 10/06/2015 &/ O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) BOTH THESE APPEALS ARE BY THE REVENUE FOR ASSESSME NT YEAR 2006-07 AND 2007-08, AGGRIEVED BY IMPUGNED ORD ER DATED 20/12/2013 OF THE LD. FIRST APPELLATE AUTHORI TY, MUMBAI. THE ONLY GROUND RAISED IS THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DELET ING THE ADDITION MADE ON PROTECTIVE BASIS IN THE HANDS OF T HE ASSESSEE IN RESPECT OF THE AMOUNT DEPOSITED IN THE JOINT BANK ITA NO.1338 & 1339/MUM/2014 KHIRAD ZAIDI 2 ACCOUNT WITH MS. CHANDBIBI ZAIDI, WITHOUT APPRECIAT ING THE FACT THAT THE ASSESSEE IS A STUDENT, STUDYING OUTSI DE INDIA, WITH NO INDEPENDENT SOURCE OF INCOME, WITHOUT CORRE CTLY INTERPRETING THE REMAND REPORT OF THE ASSESSING OFF ICER AND REACHING TO A WRONG CONCLUSION. 2. DURING HEARING OF THIS APPEAL, I HAVE HEARD, SH RI A.K.DHONDIAL, LD. DR, WHO ADVANCED HIS ARGUMENTS WH ICH ARE IDENTICAL TO THE GROUND RAISED. ON THE OTHER H AND, MS. SHABNUM KEDIA, LD. COUNSEL FOR THE ASSESSEE, DEFEND ED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER BY CONT ENDING THAT THE FACTS AND THE ISSUE ARE IDENTICAL TO THE C ASE OF RAVISH P. ZAIDI (ITA NO.1347/MUM/2014). THE LD. DR DID NOT CONTROVERT THE CONTENTION OF THE ASSESSEE. 3. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERU SED THE MATERIAL AVAILABLE ON RECORD. I FIND THAT, AS CANVA SSED BY LD. COUNSEL FOR THE ASSESSEE, THAT THE FACTS AND THE IS SUES ARE IDENTICAL TO THE CASE OF RAVISH P. ZAIDI (SUPRA), W HEREIN, THE BENCH CONSIDERED THE FACTS IN DETAIL AND DISMISS TH E APPEAL OF THE REVENUE. THE RELEVANT PORTION OF THE SAME IS REPRODUCED HEREUNDER FOR READY REFERENCE:- 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT A SEARCH AND SEIZURE ACTION U/S 132 (1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) WAS CARRIED OUT IN CHANDBIBI ZAIDI, GROUP OF CASES ON 20/08/2009. THE CASE OF TH E ASSESSEE, WHO WAS THE DAUGHTER OF THE SISTER OF ITA NO.1338 & 1339/MUM/2014 KHIRAD ZAIDI 3 CHANDBIBI ZAIDI WAS CENTRALIZED. A BANK ACCOUNT IN THE JOINT NAME OF MS. RAVISH ZAIDI AND CHANDBIBI ZAIDI WAS WITH NOVA SCOTIA BANK, NARIMAN POINT BRANCH, MUMBAI, WAS FOUND. THERE WERE DEPOSITS TO THE TUNE OF RS.23,71,427/-, INCLUDING INTEREST IN THE FINANCIAL YEAR 2004-05. THE DEPOSITS WERE OFFERED FOR TAXATION. THE AMOUNT WAS HELD TO BE UNEXPLAINED INVESTMENT AND THUS ADDED U/S 69B OF THE ACT. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). BEFORE THE LD . FIRST APPELLATE AUTHORITY, THE ASSESSEE VIDE LETTER DATED 19/02/2013, CLAIMED THAT THE AMOUNTS WERE RECEIVED BACK FROM MUMBAI MAJDOOR SABHA, AMOUNTING TO RS.10 LAKHS WHICH WAS INVESTED IN EARLIER YEARS BEFORE 01/04/2001 AND RS.2 LAKH AND RS.8 LAKH WAS GIFTED BY MS. CHANDBIBI ON 01/04/2001. TO SUBSTANTIATE ITS CLAIM, THE ASSESSEE FILED CONFIRMATION FROM MUMBAI MAJDOOR SABHA FOR MS RAVISH ZAIDIS ACCOUNTS, ALONG WITH BALANCE-SHEET AS ON 31/12/2001, CONFIRMATION OF COPY OF ACCOUNT OF MS. CHANDBIBI, LETTER OF GIFT FROM MS. CHANDBIBI, CO PY OF BALANCE SHEET AND CAPITAL ACCOUNT OF MS. CHANDBIBI AS ON 31/03/2002, COPY OF ACKNOWLEDGEMENT OF RETURN, BANK STATEMENT OF MUMBAI MAJDOOR SABHA FOR REPAYMENT OF LOAN IN MAY 2004 (RS.10 LAKHS) AND THE INVESTMENT MADE, APPEARING IN THE BALANCE SHEET, AS ON 31/03/2002. ALL THESE DOCUMENTS WERE FORWARDED TO THE ASSESSING OFFICER FOR HIS COMMENTS AND THE ACIT VIDE LETTER DATED 31/11/2013, THROUGH ADDL.CIT SENT THE REMAND REPORT THAT TOO AFTER VERIFICATION OF BANK ACCOUNTS. IN THE REMAND REPORT, THE ASSESSING ITA NO.1338 & 1339/MUM/2014 KHIRAD ZAIDI 4 OFFICER FOUND NO UNEXPLAINED CASH CREDITS. THE RELEVANT FINDING OF THE COMMISSIONER OF INCOME TAX (APPEALS) AS CONTAINED IN PARA 5.2 OF THE IMPUGNED ORDER IS REPRODUCED HEREUNDER FOR READY REFERENCE:- 5.2. IN THE REMAND REPORT SUBMITTED BY THE ASSESSI NG OFFICER ACIT CENTRAL CIRCLE-43, MUMBAI DATED 28/11/2013 THR OUGH ADDITIONAL CIT CENTRAL RANGE 6, MUMBAI, THE CREDITS IN THE BANK ACCOUNTS WERE VERIFIED AND IT WAS SUBMITTED THAT NO UNEXPLAINED CREDITS WERE FOUND. HENCE THE ADDITION MADE OF RS.20,00,000/- IN AY 2005-06 AND RS.5,80,000/- FOR AY 2006-07 ARE DELETED. THE GROUND OF APPEAL NO. 1 IS TO THIS EXTENT ALLOWED. IN VIEW OF THE SUBMISSION OF THE ASSESSEE AND REMAND REPORT BY THE ASSESSING OFFICER, THE IMPUGNED ADDITION WAS DELETED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). NO CONTRARY EVIDENCE WAS PRODUCED BY THE REVENUE IN SUPPORT OF THE GROUND RAISED, THEREFORE, I FIND NO INFIRMITY IN THE CONCLUS ION DRAWN BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). IT IS UPHELD. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. I FOUND THAT THE LD. COMMISSIONER (APPEALS) SOUGHT REMAND REPORT FROM THE ASSESSING OFFICER WHO, ON VERIFICAT ION OF FACTS AND THE BANK STATEMENTS, FOUND THAT THE ADDITION WA S WRONGLY MADE. IN VIEW OF THE REMAND REPORT AND THE MATERIAL PRODUCED BY THE ASSESSEE BEFORE THE LD. COMMISSIONE R OF INCOME TAX (APPEALS) ALONGWITH EXPLANATION, FOUND T HAT THE ADDITION IS NOT WARRANTED, CONSEQUENTLY, ALLOWED TH E APPEAL OF THE ASSESSEE. I ALSO EXAMINED THE ASSESSMENT OR DER AS WELL AS CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INCOME ITA NO.1338 & 1339/MUM/2014 KHIRAD ZAIDI 5 TAX (APPEALS) AND UPHELD THE ORDER OF THE LD. FIRST APPELLATE AUTHORITY, BEING SATISFIED, WITH THE CONCLUSION ARR IVED IN HIS ORDER, THUS, FOLLOWING THE AFORESAID ORDER OF THE T RIBUNAL IN THE CASE OF RAVISH P. ZAIDI, I FIND NO MERIT IN THE SE APPEALS OF THE REVENUE. BOTH THE APPEALS ARE DISMISSED. FINALLY, THE APPEALS OF THE REVENUE ARE DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LEARNED REPRESENTATIVES FROM BOTH THE S IDES AT THE CONCLUSION OF THE HEARING ON 10 TH JUNE 2015. SD/- (JOGINDER SINGH) !' / JUDICIAL MEMBER MUMBAI; DATED : 10/06/2015 F{X~{T? P.S / ! &$)!*+,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( '#$ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -./ ' , ) '#$ ' 1 , / DR, ITAT, MUMBAI 6. /2 3$ / GUARD FILE. & / BY ORDER, (-# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI